Ashley Shepherd is the founder and managing director at Over50choices. With over 30 years’ experience in financial services, he has held senior roles in building societies, banks and insurance companies.
Equity release can help pay off an interest only mortgage if you’re coming to the end of your mortgage term and facing a shortfall. However, this depends on eligibility.
So what does the Money Saving Expert really think of equity release, what should we be aware of and are there any alternatives.
Equity release or Lifetime Mortgages as they are known are becoming more popular as people look for ways to increase their income
The amount of equity you can release from your home ranges from 20% to 50% of the property value. However, this depends on your age and the value of your home. Usually the older you are, the more equity you can release
Equity release is repaid when you die or move into long term care, usually from the proceeds of the sale of your property. Read more.
Equity release is a way of unlocking money that is tied up in your home, giving you a tax free cash sum to use how you wish. There are no monthly repayments and the cash can either be taken as a lump sum or drawdown when you need it.
The Equity Release Council Autumn 2018 Market Report is out and makes very interesting reading on the way we view property and the part it is starting to play in our retirement and later life planning.
Therersquo;s no doubt that these types of schemes, also known as lifetime mortgages are big business, especially amongst retirees looking to enhance their pension pot, make home improvements or use as a gift for family.nbsp;
Itrsquo;s fair to say that this huge increase in the demand for equity release mortgages or lifetime mortgages as they are also known is nationwide, however there are certain pockets of the country, so called lsquo;equity release UK hotspotsrsquo;nbsp;
Equity release schemes have received their fair share of bad press in the past. Any comment to the effect that they might not be for everyone has been seized on as meaning that they are really for no one - these and other myths are just that ndash; simply not true.
When you arranged it ndash; probably many years ago ndash; you might have thought an ldquo;interest onlyrdquo; mortgage sounded ideal. It offered a way to pay less on your monthly mortgage amount as you only paid the interest amount over a fixed timenbsp;
With so many uses it#39;s not surprising to hear that the number of people of releasing equity from their own has risen again to a whopping pound;824m being released in 3 months, between July and September 2017 which is a 44% increase on the previous year.
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